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Quiz Session - Attempts With Random Questions

APICS CSCP Exam Questions

Page 4 of 50

61.

If an organization had a bulky or heavy product that needed to be shipped from Florida to New York at a relatively low cost, what type of carrier would the organization most likely use?

  • Rail

  • Air

  • Water

  • Motor

Correct answer: Rail

A rail carrier would most likely be used to transport a bulky or heavy product that needed to be shipped from Florida to New York. Rail carriers are relatively inexpensive; however, they are slow and inflexible.

Air carriers are generally used to transport light-weight, high-valued goods that need to be shipped quickly. Water carriers are able to carry low-valued goods that are bulky and heavy at a slow pace. Motor carriers are generally used to transport small or large items for local pickup or delivery.

62.

A furniture company aims to establish a long-term collaborative relationship with an alliance partner to acquire access to premium raw wood materials. What is this an example of? 

  • Strategic sourcing

  • Tactical buying

  • Negotiation

  • Alliance development

Correct answer: Strategic sourcing

Strategic sourcing is the process of establishing a long-term, proactive, global, holistic, and collaborative relationship with an alliance partner to acquire strategic materials and services. Top management is often closely involved, and the process examines supply chain costs and reducing the Total Cost of Ownership (TCO). 

Tactical buying is short-term, nonstrategic, reactive, and transactional-based purchase orders, often with limited vendor communication and management involvement. 

Negotiation is simply the process in which a buyer and supplier agree upon the conditions surrounding the purchase of an item or a service. 

Alliance development is the process of working with a supplier to strengthen their capabilities. 

63.

The organization that Sally works for is extremely versatile, as it makes all of its own materials and components. Which of the following is a reason why Sally's organization would decide to make instead of buy?

  • Use existing idle capacity

  • Lack of expertise

  • Insufficient capacity

  • Higher cost

Correct answer: Use existing idle capacity

To avoid laying personnel off during slow periods, some organizations decide to use that idle time to make the needed materials and components. Other reasons organizations decide to make instead of buy are to protect proprietary technology, no other component supplier, better quality control, control lead time, and lower cost.

Lack of expertise and insufficient capacity are reasons why an organization would buy, not make. Higher cost is not a reason organizations would buy or make, as organizations look for lower-cost alternatives.

64.

In a CRM, what does the account management tool do? 

  • Keeps track of all customer data and past purchases and manages the data for marketing purposes

  • Identifies what suppliers to use for raw materials 

  • Keeps track of inventory in distribution centers 

  • Implements a series of security checks for any new employee at a firm

Correct answer: Keeps track of all customer data and past purchases and manages the data for marketing purposes 

The other options are not features of an account management tool in a CRM.

65.

What type of agreement is usually put in place to set metrics, monitor performance, and levy penalties if the metrics are not being met?

  • Service Level Agreement (SLA)

  • Annualized contract 

  • Incentive contract

  • Blanket purchase order

Correct answer: Service Level Agreement (SLA)

Service Level Agreements (SLA) document how performance is measured between a supplier and a buyer and what happens when agreed upon metrics or milestones are not met. A blanket purchase order is an order with specific quantities and delivery dates spread over time. An annualized contract is a long-term agreement that discusses pricing, quantities, and timing. An incentive contract will discuss all normal aspects of a standard contract, but it has an added section discussing additional rewards for additional services, such as defined defect rate, early completion, market satisfaction, etc.   

66.

Jonathon received samples of flavored coffee beans to try in his coffee shop. Prior to offering the new flavors of coffee, he decides to send out advertisements and messages to his best customers notifying them of the new flavors. Some customers get emails, others get phone calls, and still others receive flyers in the mail.  

This is an example of using the customers' preferred what?  

  • Communication channels 

  • Voice of the customer 

  • Marketplace 

  • ERP system 

Correct answer: Communication channels 

Communication channels are the method in which messages are relayed to the target audience.

Voice of the customer solicits responses and feedback from the customer to allow companies to better focus on a customer's wants and needs. The marketplace is a general term for customers and firms to purchase or sell products or services. An ERP system does not have any relevance to this question.

67.

In a demand-driven enterprise, which of the following triggers product development and manufacturing?

  • Expressed customer need and want

  • Inventory depletion

  • Warehouse cost

  • Customer survey compilation

Correct answer: Expressed customer need and want

A demand-driven supply chain management emphasizes consumer pull versus supplier push. The process begins with customers expressing a need and wanting a product or service.

Inventory depletion, warehouse cost, and customer survey compilation are incorrect choices because the demand chain is triggered once the customers express their needs or wants.

68.

Collaborative planning, forecasting, and replenishment (CPFR) is a methodology used for the integration of demand management components among supply chain partners. What is not a result of CPFR?

  • Increased costs

  • Reduction in the bullwhip effect 

  • Improved customer satisfaction 

  • Enhanced visibility across the supply chain 

Correct answer: Increased costs

Increased costs are not a result from a successful CPFR; in fact costs are reduced. 

A reduction in the bullwhip effect, overall improved customer satisfaction, and enhanced visibility across the supply chain are all results of a successful CPFR. 

69.

Which of the following would most likely cause a steady, long-term growth in laptop demand?

  • Trends

  • Seasonality

  • Cycles

  • Random variation

Correct answer: Trends

Trends would most likely cause a steady, long-term growth in laptop demand. A trend is defined by the APICS Dictionary, 15th Edition, as the “general upward or downward movement of a variable over time.”

Seasonality is defined by the APICS Dictionary, 15th Edition, as “a predictable, repetitive pattern of demand measured within a year where demand grows and declines. These patterns are calendar related and can appear annually, quarterly, monthly, weekly, daily, and/or hourly.” Cycles occur when there are shifts in demand that last longer than one year. Random variation is defined by the APICS Dictionary, 15th Edition, as “a fluctuation in data that is caused by uncertain or random occurrences.”

70.

An Original Equipment Manufacturer (OEM), an outside group of engineers, and the end customer's design team all work together on product development in order to get the design of a new product correct the first time. What is this an example of?

  • Concurrent Engineering

  • Product Life Cycle

  • Life Cycle Assessment

  • Life Cycle Analysis

Correct answer: Concurrent Engineering

Concurrent Engineering (CE) speeds up the design process  by taking input from various stakeholders throughout the product's development. The product life cycle looks at the design for the disposal of a product and it includes the four stages of introduction, growth, maturity, and decline. Life Cycle Assessment (LCA) looks at a product's life cycle from raw material to disposal, and considers the environmental impact. Life Cycle Analysis looks at the historical demand for a similar product or product category and predicts future demand for new products with similar characteristics.   

71.

Incoterms, or the International Commercial Terms, is a uniform set of rules that were created by the International Chamber of Commerce. There are currently 11 rules that are divided into two categories; one category being terms for any transport mode. 

What is the other category?

  • Terms for waterway transport

  • Terms for transportation using air crafts

  • Terms for transportation over land

  • Terms for transportation using rail cars

Correct answer: Terms for waterway transport

The two categories for the 11 Incoterms are terms for all methods of delivery and terms for waterway transport. Seven Incoterms are housed in the first category, and four Incoterms are housed in the second.

The APICS Dictionary, 16th Edition, defines Incoterms as "a set of rules established by the International Chamber of Commerce that provides internationally recognized rules for the interpretation of the most commonly used trade terms in foreign trade and are routinely incorporated in the contracts for the sale of goods worldwide to provide guidance to all parties involved in the transaction."

72.

What is ISO 31000? 

  • A standard that outlines principles and a set of guidelines to manage risk in any endeavor

  • A standard to continually improve the environment

  • A standard that addresses quality management

  • A standard for managing security risks within a supply chain

Correct answer: A standard that outlines principles and a set of guidelines to manage risk in any endeavor

This standard includes guidelines for understanding risk, developing a risk management policy, integrating risk management into organizational processes, and establishing internal and external risk communication processes. 

A standard to continually improve the environment is ISO 14000. A standard that addresses quality management is ISO 9000. A standard for managing security risks within a supply chain is ISO 2800. 

73.

What is a goal of Six Sigma quality?

  • Produce only 3.4 defects for every 1 million opportunities or operations

  • Develop six efficient nodes for the distribution of goods in a supply chain

  • Digitally connect the entire supply chain with an ERP system to achieve a 66% increase in production efficiency

  • Reduce 6.66% of waste in the supply chain

Correct answer: Produce only 3.4 defects for every 1 million opportunities or operations 

Six Sigma aims to reduce redundant processes and improve quality—specifically, producing only 3.4 defects for every 1 million opportunities or operations and also striving for process improvement initiatives for six sigma-level performance. 

The distractors are unrelated to Six Sigma. 

74.

Roger works on the production line at Zoom-Zoom Cars. One day he noticed that a section of the conveyor belt had a large crack in it, and looked like it could snap at any time. If the conveyor belt goes down, then production on the cars would stop. What type of action should Zoom-Zoom Cars perform on the conveyor belt? 

  • A preventative action

  • A corrective action

  • A contingent action

  • A simulation

Correct answer: A preventative action

A preventative action occurs when an issue or potential error is discovered and addressed before it can cause a larger problem. A Contingent action is a backup plan on how to recover from some specific event. Corrective actions are steps taken in order to eliminate a problem once it has been discovered. A simulation is used to look at different outcomes when changing different conditions and how those affect results. 

75.

Which of the following focuses on the long-range picture and direction of a company, defining how it intends to compete in the marketplace and reviewing core competencies? 

  • A business strategy

  • A corporate strategy

  • A global strategy

  • An organizational strategy

Correct answer: A business strategy

Business strategies look long-range, looking at how the company can compete in the marketplace, leveraging core competencies, and depicting a future view. A business strategy often guides operations strategy, marketing strategy, supply chain strategy, etc. 

Corporate strategy defines and communicates how a company intends to compete and succeed against its competition in the global marketplace. 

Global strategy includes growth objectives by country or region. 

Organizational strategy identifies how a company intends to evolve over time to achieve its long-term goals. 

76.

Guidance for managing risk in any activity is a topic of which International Organization for Standardization (ISO) standard?

  • ISO 31000

  • ISO 14000

  • ISO 9000

  • ISO 28000

Correct answer: ISO 31000

ISO 31000 provides guidance for managing risk in any activity. ISO 31000 is defined by the APICS Dictionary, 15th Edition, as “a standard adopted by the International Standards Organization that outlines principles and a set of guidelines to manage risk in any endeavor. The standard outlines guidelines for understanding risk, developing a risk management policy, integrating risk management into organizational processes (including accountability and responsibility), and establishing internal and external risk communication processes.”

ISO 14000 provides guidance for environmental management standards. ISO 9000 provides guidance for organizational quality standards. ISO 28000 provides guidance for setting up a security management system.

77.

GGKL Ltd. fabricates golf balls. It uses different in-process storages to stock the cores, make the skins in different colors, and fabricate the final golf ball batches only when orders come in. 

What kind of production strategy is GGKL using?

  • Assemble to order

  • Assemble to store

  • Design to value

  • Build to order

Correct answer: Assemble to order

GGKL Ltd. is using the assemble-to-order (ATO) strategy. It produces sub-assemblies that it stores in wait for an order. When an order comes in, the proper sub-assemblies are put together to produce the end product. This strategy allows for customization.

The assemble-to-store strategy is used to build inventory. The design-to-value strategy analyzes what consumers want in order to redesign their products. The build-to-order strategy is used to customize products for consumers individually.

78.

 Simplification can be defined as “improving quality and cutting costs by removing complexity from a product or service.” All except which of the following are types of simplification?

  • Modular design

  • Concurrent engineering

  • Design for manufacture and assembly

  • Design for service

Correct answer: Modular design

Modular design is a type of component commonality, not a type of simplification. The APICS Dictionary, 16th Edition, defines the modular design strategy as “planning and designing products so that components or subassemblies can be used in current and future products or assembled to produce multiple configurations of a product.”

Concurrent engineering, design for manufacture and assembly, and design for service are all types of simplification. Concurrent engineering is the thought the design process can be simplified and shortened if stakeholders contribute.

According to the APICS Dictionary, 16th Edition, the design for manufacture and assembly is “a product development approach that involves the manufacturing function in the initial stages of product design to ensure ease of manufacturing and assembly.”

Design for service is defined by the APICS Dictionary, 16th Edition, as being the “simplification of parts and processes to improve the after-sale service of a product.”

79.

What is the efficiency of a work center with a standard to produce 80 units in one eight-hour work day, but they produced 93 units in a day?

  • 116.3%

  • 688%

  • 86%

  • 13%

Correct answer: 116.3%

Efficiency is calculated by dividing the actual units produced by the standard, or expected, production. Unlike utilization, efficiency can exceed 100%. In this case: 93 / 80 = 1.1625; 1.1625 x 100 = 116.25 (116.3% rounded up).

80.

What is an example of how to improve stowability?

  • Moving from selling single-piece fishing rods to telescoping fishing rods

  • Shipping furniture fully assembled rather than broken down

  • Expanding from selling hockey pucks to hockey sticks

  • A beer company decides to start selling pint glasses with six-packs as part of their anniversary offering

Correct answer: Moving from selling single-piece fishing rods to telescoping fishing rods

Stowability is the product placement and positioning on a chosen mode of transportation, such as a truck bed or container. Odd shapes, weights, lengths, hazardous materials, fragility, or packaging can impact the transportation process and impact costs. A telescoping fishing rod would be smaller and have improved stowability. 

The other options would not improve stowability because they increase the size or fragility of the load.

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